Uncertainty surrounds Oakeshott on opt-in

Despite having earlier this year indicated his concern about the two-year opt-in contained in the Government's Future of Financial Advice (FOFA) legislation, there is no certainty NSW Independent Rob Oakeshott will support key amendments to the Government's bills.

With the Assistant Treasurer and Minister for Financial Services Bill Shorten having told last week's Financial Planning Association (FPA) national conference that he is no doubt the FOFA bills will pass the Parliament, financial planners who have lobbied Oakeshott have confirmed the independent's refusal to commit to supporting amendments to the legislation.

Financial planners have targeted both Oakeshott and Tasmanian independent Andrew Wilkie with the objective of having them support the Federal Opposition in delivering key amendments to the FOFA bills, but neither politician is understood to have given any firm commitments.

In the meantime, both the FPA and the Association of Financial Advisers (AFA) have been working on submissions to the Parliamentary Joint Committee on Financial Services, which is currently reviewing the FOFA bills.

The FPA and the AFA are united in opposing the first tranche of the FOFA bills, particularly with respect to opt-in and the last minute imposition of an annual fee disclosure requirement.

Shorten last week used his address to the FPA conference to signal that the Government was prepared to moderate its approach to the annual fee disclosure requirement, particularly with respect to existing clients and retrospectivity.

AFA chief executive, Richard Klipin today welcomed the minister's indication of a moderating of the approach around annual fee disclosure and said while his organization wanted to be constructive it remained concerned about consistency.

Shorten is expected to release the second tranche of the FOFA bills before the Parliament rises for its summer recess.